Bob Fraser explains how central banks created roughly $11 trillion in new money since 2008 by buying assets, a process called monetizing the debt. When the central bank's balance sheet expands to buy assets, it's printing money. When it contracts by selling, the money disappears.
Central banks monetized $11 trillion, and this is the balance sheet of the central banks. So if they're buying stuff, this goes up. If they're selling stuff, it goes down. And so what happened is the central banks bought $11 trillion of stuff. What that means is they basically print money and they buy stuff, and that's called monetizing the debt. So they're actually printing money and it's another form of stimulus that is very powerful. And it's actually very new. So this only has really happened since the great financial crisis down here.
